This paper examines the role of Alternative Dispute Resolution (ADR), particularly arbitration and mediation, in facilitating cross-border trade and investment in India. The study addresses the central problem of inefficiencies in traditional litigation systems, which often deter foreign investors due to delays, high costs, and jurisdictional complexities. Adopting a doctrinal research methodology, the paper analyses statutory frameworks including the Arbitration and Conciliation Act, 1996, the Mediation Act, 2023, and relevant judicial precedents, alongside international instruments such as the UNCITRAL Model Law and the New York Convention. The research argues that while India has made significant progress in aligning its ADR framework with global standards, structural and institutional deficiencies continue to hinder its effectiveness in cross-border dispute resolution. Key challenges include delays in enforcement, judicial intervention, lack of institutional capacity, and limited adoption of technology-driven dispute resolution mechanisms. The paper concludes that strengthening ADR mechanisms is essential for enhancing investor confidence and promoting international trade. It recommends targeted reforms, including institutional strengthening, greater judicial restraint, enhanced digital infrastructure, and capacity-building initiatives for arbitrators and mediators. By addressing these challenges, India can position itself as a competitive and reliable global arbitration hub.